Karnataka's economic growth this year may get contracted due to flood havoc: Report
Bengaluru, Oct 11: Karnataka's economic growth for the current year may get "contracted" due to the havoc caused by floods, the mid year review of state's finances tabled in the legislative assembly on Friday said.
It also said the union Finance Minister's announcement of reduction in Corporate Income Tax for the year 2019-20 may have an adverse impact on the devolution from government of India, as the divisible pool of taxes may come down.
"The state's economic growth (GSDP) was 9.6 per cent during FY 18-19.
The havoc caused by the floods in the state in 2019-20 has affected the socio-economic conditions. This has had an adverse impact on the investment in infrastructure and other development activities because of which the growth may get contracted for the current year," the mid year review stated.
With the increase demand for flood relief and other contingent liabilities, the Karnataka Chief Secretary, who is also the head of the Fiscal Management Review Committee, has advised the Finance department to propose additional resource mobilization measures to ensure that all fiscal parameters will be maintained.
The Committee noted the increased pressure on the state government to take up relief activities in flood hit districts and consequent requirement of funds,the review said.
The committee also noted that around Rs Rs 5,000 crore was already made available through reallocation of budgetary grants and supplementary estimates for flood relief work.
It also said the Chief Secretary has advised the finance department to follow up with the union government through the disaster management cell of the Revenue department for early release of funds under NDRF.
A total of 2,798 villages in 103 taluks of 22 districts were affected by floods in which around seven lakh people were shifted to safer areas.
Ninety one people died and about 3,400 heads of cattle perished in the rains and floods.
The review noted that devolution from the government of India in the first six months of 2019-20 was Rs 14,668 crore at 36.8 per cent of budget estimate of Rs 39,806 crore
However the union government in its July 5 budget indicated that devolution to the state was Rs 38,134 crore, which was Rs 1,672 crore lower than the amount indicated in the budget February 2019.
"Subsequent to the budget presented by the Union government in July, the Finance Minister has announced reduction in Corporate Income Tax for the year 2019-20.
This may have an adverse impact on the devolution as the divisible pool of taxes may come down,"it further said, noting that devolution as a proportion of actuals of 18-19 was 41.7 per cent in the first half of last year.
The review also noted that Karnataka has been maintaining revenue surplus since 2004-05 and upto September 2019, the revenue surplus was Rs 12,376 crore, compared to the budget estimate of Rs 258 crore, "reflecting a comfortable mid year revenue position for the state."
"Revenue surplus would also be maintained at the end of FY 19-20," it added.
The review also pointed out that with prudent fiscal management, continuing revenue mobilization efforts, pruning down non-essential expenditure and identification of savings to partly finance new expenditure commitments included in the Supplementary Estimates, it should be possible to remain within the fiscal deficit limit proscribed.
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EC can choose counting personnel, no further order needed: SC on TMC plea
New Delhi (PTI): The Supreme Court on Saturday said no further order was necessary on the TMC's plea challenging the Calcutta High Court's dismissal of its petition against an Election Commission circular on the deployment of central government personnel for vote counting in West Bengal.
A special bench of Justices P S Narasimha and Joymalya Bagchi said the Election Commission can choose the counting personnel, and its April 13 circular, which provides for deployment of state government employees as well, cannot be said to be incorrect.
The poll body said the apprehensions of Trinamool Congress (TMC) of any wrongdoing is misplaced, as the circular very clearly states that there will be a mix of central and state government employees.
The Election Commission assured the court that the circular would be implemented in letter and spirit, and there would be state government employees also during the counting of votes on May 4.
At the outset, senior advocate Kapil Sibal, appearing for the TMC, said the circular was dated April 13, but they came to know about it on April 29.
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He said there are four issues: One, the circular appointing Central employees was issued to DEOs on April 13, but came to their knowledge only on April 29; Two, the Election Commission says it has apprehensions of irregularity, despite having a Central nominee in the counting process; Three, the poll body already has a Central government officer at each counting table in the form of a micro observer, and four, the commission has not appointed state nominees even though the circular provides so.
Sibal submitted that the Chief Electoral Officer's communication states that there are apprehensions expressed from various quarters regarding possible irregularities in counting.
"That is like pointing a finger at the state government..." Sibal said, adding, "There must be some data. Where is (the proof of) the apprehension (raised) from each booth? They have not disclosed this. And why not tell us that they are going to have a Central government nominee?"
The bench, which held a special sitting, told Sibal that even if the Election Commission's circular had provided for the appointment of Central employees as both the counting supervisor and the counting assistant, the court could not have faulted the decision.
"The option is open for the Election Commission: whether the counting supervisor and assistant may be of the Central or the state government. When that option is open, we cannot hold that the notification is contrary to regulations. Even if the EC says that both of them can be Central government employees, we could not have faulted them. Because regulations say that either the Central government or state government officers can be appointed," Justice Bagchi told Sibal.
Sibal then submitted that the court may ask the Election Commission to follow the impugned circular in its entirety, which provides for a state government nominee.
"All we want is, in terms of the circular, the state government nominee should be there," he said.
Justice Bagchi asked if he wants compliance with the circular, then why is the TMC before the court.
Senior advocate D S Naidu, appearing for the Election Commission, submitted that the returning officer is a state government employee with overarching power to deploy personnel from any pool of government employees.
"We are saying that there will be state government employees during the counting of votes," Naidu submitted, adding that each candidate will also have their own counting agent.
"The TMC's apprehension of any wrongdoing is completely misplaced," he reiterated.
The bench then disposed of the plea, saying that no further order is necessary and reiterated that the Election Commission will follow its circular in letter and spirit.
Polling for the 294-member West Bengal Assembly was held in two phases -- April 23 and April 29. The counting of votes will be taken up on May 4.
On April 30, the Calcutta High Court dismissed the TMC's petition against the Election Commission circular, saying there was no illegality in the poll panel's decision to appoint counting supervisors and assistants from Central government and Public Sector Undertaking (PSU) employees, instead of the state government staff.
In the high court, the TMC had challenged an April 13 communication issued by the additional chief electoral officer of West Bengal that stated that at least one of the counting supervisors or assistants at each table should be a Central government or PSU employee.
The TMC's counsel had argued before the high court that the communication was issued without jurisdiction and was based on mere apprehension.
The EC's counsel had contended before the high court that the Representation of the People Act, 1951, allows delegation of the commission's functions and that the directive was valid.
The poll panel's counsel had also submitted that the communication was issued on April 13, but the petition was filed only on April 30, close to the counting date, alleging that the move was intended to stall the process.
The high court had not agreed with the TMC's allegation that its main opponent, the Bharatiya Janata Party (BJP), controls the employees of the Central government or PSUs, making them susceptible to suggestions and control by the Union government.
It had also noted that apart from the counting supervisors and assistants, micro-observers, counting agents of candidates, and other personnel would also be present in the counting hall.
